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Shackled to a Car Loan

Many American car owners are stuck between a rock and a hard place. They cannot make payments on their car loans and they cannot get rid of their loans by trading in their cars. Learn more about why this is happening.

Cannot afford car loans by chris@kilmerco.com

References

A Wild Ride

  • https://fred.stlouisfed.org/series/DAUPSA
  • https://fred.stlouisfed.org/series/TOTALSA
  • https://fred.stlouisfed.org/series/fedfunds
  • https://www.statista.com/statistics/290673/auto-loan-rates-usa/

Car Loans Became Unaffordable

  • https://www.finder.com/car-loan-statistics
  • https://dailycaller.com/2023/01/25/us-falling-behind-car-payments-2009-crisis/
  • According to Kelley Blue Book, in January 2023, the "Average new car transactions remained steady month-over-month in January at $49,388." https://www.kbb.com/car-advice/when-will-car-prices-drop/. According to the Bureau Of Labor and statistics, the "Median 2022 weekly earnings for the total labor force age 16 and older is $1,059 (Page 12). [1059 * 52 is $55,068 / year] https://www.bls.gov/news.release/pdf/wkyeng.pdf. 49,388 / 55,068 = Average new car is 89.6% of median pre-tax earnings. 

Owners are Under Water

  • https://news.yahoo.com/growing-number-car-buyers-loans-165434413.html

Cutting Corners

  • https://cleantechnica.com/2023/01/12/elon-musk-others-warn-of-looming-auto-crisis/

Warning Bells From the Experts

  • https://twitter.com/CathieDWood/status/1603810994782101504?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1603810994782101504%7Ctwgr%5E2e242c24df516a3dc5af433a06bf9ef9b474abc5%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcleantechnica.com%2F2023%2F01%2F12%2Felon-musk-others-warn-of-looming-auto-crisis%2F

Stuck with a Car loan you Can't afford?

  • https://www.credit.com/loans/loan-articles/what-to-do-if-you-cant-make-your-car-payments/



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